Is bigger necessarily better when it comes to doing business?
Sure, it’s nice to have a comfortable bottom line and tons of breathing room when it comes to your budget. That said, sometimes companies on the rise have to deal with some tough decisions and hidden costs that keep them from reaching their full potential.
But what hidden costs are we talking about? Look over the following five problems that plague growing companies to see where your own business stands.
Simply put, there’s nothing worse than a potential security breach or the compromise of company data when it comes to your company data. Although you may not immediately lose anything from a breach or attack, you do lose peace of mind which takes its toll on employees and investors alike. From developing a process for user access review to having systems in place to back up and defend company data, security remains a top priority for any major company today.
Excessive Hiring and Firing
There’s a massive price tag involved when both bringing on and letting go of a new employee. In fact, high turnover costs businesses millions per year and remains an unspoken problem in many of the biggest offices out there. Why is the cost so high, though? Consider how turnover burdens a business and its employees such as…
- The time involved with training and onboarding an employee by management and HR, time which could be spent elsewhere
- Lost productivity costs associated with unhappy employees or workers on the way out: even if someone leaves on good terms, you’re not operating at 100% when people are actively leaving
- Similarly, the time needed for new employees to “catch up” the point of their predecessor, which could take weeks or even months depending on the role
Dealing with a legal battle is a matter of “when,” not “if” for growing businesses. Whether it’s a messy lawsuit from a former employee or a competitor taking you to court over copyright law, there’s a reason why every business is expected to legal counsel on call at any moment.
Even if you aren’t necessarily at fault, the red tape and paperwork involved in lawsuits represent absolute nightmares if you don’t have a lawyer to guide you through the process.
Offering top-notch benefits to your employees is an expectation and a fantastic way to attract top talent. That said, benefits can get quite pricey for businesses growing at a rapid rate.
Although you certainly shouldn’t skimp on benefits for your best workers, the ever-changing regulations and costs associated with them are cause for concern. This is why there’s such a large movement toward hiring remote workers and freelancers who don’t require compensation in the form of benefits.
Finally, companies today are in tune with technology like never before; however, being a tech-savvy business certainly comes with its respective price tag. While you don’t necessarily have to rely on freeware forever, you should look into cost-effective options for company software to avoid office-wide licenses when possible.
From employee engagement platforms to project management software, you can find freebies that are almost as good as the “real deal” with a bit of digging.
Don’t let these hidden challenges stop your business in its tracks. By knowing what to look out for as your business grows, you can reach new heights without having to worry about “what-if.”